PRODUCTION MANAGEMENT

IMPORTANCE & CONCEPTS

 INTRODUCTION
 Production is the base of marketing and
other business activities.

 Production management is basically

concerned with manufacturing and other
related or supplementary activities.
 MEANING OF PRODUCTION
MANAGEMENT

 Production management is one functional

area of total business management.

 “Production is the process of transforming

raw materials or purchased components into
finished products for sales”.
DEFINITION – PRODUCTION
MANAGEMENT

According to Elwood Buffa:

“Production management is a set of

general principles for production
economies, facility design, job design,
schedule design, quality control,
inventory control, work study and cost
and ‘budgetary control.”
PRODUCTION PROCESS
 FUNCTIONS
 Design & development of production
process.
 Layout and provision of essential
facilities in the unit
 Production planning and control
 Production budget and inventory control
 Cost control and quality control
 Routing and scheduling of production
activities
 Co-ordination with other departments
IMPORTANCE OF
PRODUCTION MANAGEMENT

“PRODUCTION CYCLE
STARTS AND END WITH THE
CUSTOMER”
 CONCEPTS
Production as Marketing Function

Production as Finance Function

Production as a Purchase Function

 OTHER CONCEPTS

 Personnel, R & D, training and HRD are

also closely connected with the production
function.

 Production procedure involves the

cooperative and coordinated efforts of all the
departments
 A LOOK AT THE FUTURE !!
 Outsourcing everything

 An industrial army of robots

 What’s in the box

 Unloading zones

 Have it your way

 Main street chain store

 Personalized recommendations